Question

The world is witnessing unprecedented changes in recent times. How, in your opinion, will the developing and developed nations survive and grow as the economy evolves?

Answer 1

The world is certainly witnessing unprecented changes in recent times. The changes which had happened is not the people or government was expecting.Like for example covid 19. This epidemic had lead to loss of many lives and even the disease is so much spreading that people have to remain inside home and cannot go for work.So people unable to earn money in this epidemic situation. Since people cannot earn money they had their purchasing power decreasing.This had lead to reducing money supply in economy. Once money supply decreasing, demand for goods and services also getting reduced. Thus all sectors in the economy getting affected due to this epidemic situation.On the other had in order to combat Covid 19 , government had to take hard steps in implementing lockdowns so that people may remain in home and if they come out of home, they have to maintain social distancing.So all these actions had lead to worst situation of the economy.This had affected not only developing countries but also developed nations.

So our economy had to feed with enough money that goes into people's hand and they can buy goods and services.Government in this situation can help people by announcing stimulas packages which will lead to more money in the hands of people.Lowering interest rates from government will lead to people getting money at cheap prices and they can borrow more money.Due to this epidemic situation , people cannot cross the border and they are facing issue in getting the raw materials from other countries and cannot even import goods and services. So government had to take steps so that people can produce the goods within their own country and do not depend on other countries. The steps should be taken for more online servicing like IT companies are doing. This will lead to less people coming out of home but people at the same time can earn money working from home.Even the education that should also be made online so that students can get their education sitting from home and teachers can take online classes and impart the teaching and get their salary and do not loose jobs. In every sector like medicine, grocery , garments ete etc steps to be taken for online delivery and thus goods and services get sold and economy gets enough money and deman for goods and services remain stable.All this will lead to earnings for goverment also in form of taxes and government can spend money in combating the Covid 19 and also do developmental work . In this way economy can survive and grow in this unprecedented situation.